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2016 (1) TMI 1303 - AT - Income TaxRevision u/s 263 - disallowance under section 14A - Held that:- From the perusal of Balance Sheet as on 31.3.2009 placed at Paper Book 74, we see that further investment of ₹ 194.99 lacs was made during the year in equity shares of Jai Suspension System Limited. Further, on perusal of the same Balance Sheet, we see that the total investments are ₹ 721.99 lacs while the owned funds are amounting to ₹ 12,371.46 lacs, which further proves the fact that these investments were also made out of owned funds only. In view of the above, it is true that the assessee has made investments out of owned funds and no borrowed funds were used for such investments. In such a scenario, no disallowance under section 14A of the Act is called for. AO was fully seized of the matter, he initiated the enquiry, which was fully co-operated by the assessee. AO got satisfied and did not make any disallowance. In such a scenario, the Commissioner of Income Tax cannot impose his opinion on the decision taken by the Assessing Officer. Since it is AO’s satisfaction which matters for making such a disallowance. On the facts and circumstances of the case, the Assessing Officer did not find it appropriate to carry on any elaborate investigation. It is Assessing Officer’s prerogative to decide the extent of enquiry or investigation to be carried out by him. There is no law which directs the Assessing Officer the extent of enquiry to be made in such a case. This is, undoubtedly, not a case of lack of enquiry. Though we do not find it even a case of inadequate enquiry, even in that case, the Commissioner of Income Tax does not get the jurisdiction under section 263 - Decided in favour of assessee..
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